The profit decline was largely due to exceptional items totalling INR 4.31 billion. Adjusted for these, profit would have been in line with analysts’ estimates.
Standalone revenues from operations stood at INR 85.54 billion in the period under review, up 36% from the same period last year, led by strong performance of its aluminium as well as copper businesses. Mr Praveen Maheshwari, CFO of Hindalco, said: “The copper TC-RC (treatment charges-refining charges) have been firm in this quarter and given the macroeconomic situation we expect them to move upward in coming quarters.”
Of the total revenue, the copper segment churned out INR 52.47 billion (up 32% YoY) in the quarter gone by, while aluminium contributed INR 33.15 billion (up 41.5%). While the aluminium segment’s profit was up 104% at INR 3.39 billion, that of the copper segment was up 73% to INR 4.14 billion.
In the quarter gone by, smelting operations at Aditya Aluminium were affected by a prolonged power outage in early July due to grid failure and torrential rain. In August, rain held up smelting operations at Hirakud.
Mr Maheshwari said: “We have completely restored operations in both Hirakud as well as Aditya Aluminium. The company’s ramp-ups are also on track, with Utkal alumina refinery at 75% to 80%, Mahan smelter 50% to 60%, and Aditya Aluminium smelter is in the initial stages.
“Premiums in aluminium have gone up like never before and we do not see any reason for these premiums to come down. Also, the demand-supply deficit for aluminium is up in the global market ex China and so we see firmness in aluminium prices in coming quarters.”
Source: Steel Scenario